Ames uses its noodle, gets new pasta factory
September 14, 1997
The taste of Italy is coming to Ames. Barilla, “Italy’s Number One Pasta,” has picked Ames as its first-ever North American site.
Barilla officials announced last week that they plan to build a $137 million state-of-the-art pasta plant.
Barilla picked Ames over several other possible Midwestern locations for a “manufacturing and distribution” facility.
The Barilla plant, which will produce “speciality” pastas, will be located just east of Interstate-35 and north of Lincoln Way. Location, according to several sources close to the development of the project, was a key factor in selecting Ames.
Ames Mayor Larry Curtis said the close location of the highway provides an ideal transportation way for the companies’ products.
“The [location] is the most logical site, because the plant will need to bring wheat germ and other rail products to the factory through Union Pacific railroads,” he said.
Mark Reinig, director of planning and housing communities with the City of Ames, agreed with Curtis. Reinig helped in the negotiations between the City of Ames and Barilla.
“Barilla was very pleased with the central location rail system,” Reinig said. “And they were also pleased with the proximity of Iowa State, which can provide a multitude of food technology.”
Reinig said the company’s nation-wide search for the pasta plant was finally reduced to four or five sights. Ames beat out other sites including Franklin County and Newton, Iowa.
Another benefit of choosing Ames, Reinig said, is the fact that Iowa does not tax machinery or equipment. Therefore nearly $100 million of Barilla’s investment will not be taxed.
According to a press release, the new factory will “enable Barilla to service its rapidly growing business as the United States’ first and only national brand of pasta.”
Edwin L. Artzt, executive director of Barilla, stated in a press release that U.S. consumers will be the winners with the building of their new plant.
“[The plant] will provide consumers with authentic Italian Barilla pasta at lower prices, as we pass along savings in transportation costs and important duties,” he said.
To continue the “authenticity of their products, Barilla is currently building a ‘sister'” factory in Foggia, Italy to coincide with the production of the Ames plant.
The two plants will share knowledge and technology, and will produce identical pasta products. Barilla also has plans to send several of the Ames factory workers to Italy for “cross-training with their Italian counterparts.”
The new plant is expected to bring nearly 150 jobs to the Ames community.
“There will be a wide variety of jobs available at the plant, from engineering to warehouse jobs,” Reinig said. He said some jobs will not require previous experience.
Reinig said the starting wage for most factory workers is expected to begin at $11.42 an hour, plus a full health care program.
“Jobs are jobs,” Curtis said. “And anytime a business with nice paying jobs with good benefits comes to town, I think it will greatly help the economy.”
According to a press release, Barilla is expected to sell more than 100 million pounds of pasta this year. They are also expected to buy between $40 million to $60 million worth of durum wheat from U.S. farmers, and nearly 150,000 eggs will be used per day. There will be “many opportunities for Iowa grown products in the manufacturing process,” company officials stated.
Barilla, once fully assembled, will be one of the largest industrial property taxpayers in Ames. It will span over 240 acres, and the warehouse, plant and mill will cover 350,000 square feet. The plant is expected to be valued at $25 million.
Curtis said the good quality of life in Ames is also one of the reasons Barilla chose Ames.
“We’d like to think Ames is a good working environment,” Curtis said. “I firmly believe that Ames could offer Barilla a vast number of reasons [to choose Ames].”
“I think the people of Ames are very excited, since this is a fantastic opportunity, given that Ames will be the first city in North America with a Barilla plant,” Curtis said.
Construction workers will begin breaking ground for the plant later this week, and Barilla Pasta is expected to be fully operational by the spring of 1998.